Share tips and stock recommendations for the Australian (ASX) share market – buy, hold, and sell. Michael Gable is an expert guest commentator for the stock market newsletter thebull.com.au.

This post is an extract from the newsletter dated 1 April 2019. You can access the full version of the article HERE.

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Buy Recommendations

NCM

We have liked Newcrest since earlier this year when it broke out of a long term consolidation pattern on the charts. It has recently broken out of another shorter term consolidation and is set to move towards $30. We are bullish on gold and the recent breakout is just another buying opportunity.

GMG

GMG has been one of our picks for a while and we have had it as a buy and hold over time. The share price was taking a breather during March but its on the move again and looks like this is another buying opportunity. The stock is also fairly defensive and should therefore weather any market weakness that might occur in the short term.

Hold Recommendations

BHP

We’ve been picking BHP to rally to $40 for several months now. Recent price action has seen BHP break out of a bullish flag. This means that it is on the move again and we are happy to hold it here as it is likely to now make a move to that $40 target.

CWY

We like the business and its quite defensive. The shares are in a long term uptrend and the recent dip has found support at the right levels. It appears to be ready to head higher again so we are happy to continue holding.

Sell Recommendations

CCP

The CCP share price has been range bound for a while. Most recently it hit the upper limit of its trading range and was heavily sold off on volume. Without any catalysts to head higher, it appears as though selling pressure will push it back towards where it was a few months ago.

BGA

The chart for BGA looks terrible and it has been in a downtrend for 6 months now, shedding nearly half its value. Price action continues to look poor and it has gone backwards in the last few months when the overall market has headed higher. The path of least resistance is still to the downside.

 

Michael Gable is managing director of Fairmont Equities.

 

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